Whether we go over and above descending level or deflate further below $1300 mark almost entirely depends on Yellen’s tone.
Markets to read Neutral/data dependent Yellen as dovish
Note that neutral/data dependent Yellen is as good as dovish Yellen for the markets, given that at the start of the year Fed was seen raising rates at least four times this year.
Yellen needs to be outright hawkish i.e. drop clear hint of a rate hike in December. Only then, gold prices could suffer losses below sub-$1300 levels.
Anything short of that and we are likely to see dip demand come back. Still, bets are seen rising once prices breach falling level on monthly closing basis. Such a move appears likely if Yellen comes out dovish today.